This is Me: May 2013

Thursday, 30 May 2013

$$$ How to make money from DUXTON Sales of Balance Flat Like A Boss!! $$$

OMFG WTH Is there units from Duxton left in Sales of Balance Flat??!! Anyway I'm not eligible but the thought of how much money can be made from this got me really excited!! $$$ Hahaha..

Let take unit #46-05

Price: $769,000
Size: 1,151sqft
Price per square foot: $668psf *WTF in CBD Area?!! CCB*

Assume 80% loan of pp: $615,200
Monthly Installment (MI) over 30 years: $2064

Ballot here!!

Key Benefits:

- Pinnacle @ Duxton is the most prestige and Iconic HDB in Singapore
- Its at 46 Floor dude!!
- Market Price per room is about $1200 - $1300

Let see how we can make money if I'm still single and does not own any property.

1) Approach any single lady friend of mine to invest in this gold mine together.
2) Each standby $76,900 either from Cash or CPF for 20% Downpayment
3) 假结婚 ROM, get the freaking Flat!
4) Rent of all the 3 rooms or whole unit. Est Rental: $3.5 - 4k
5) Gross profit per month after offsetting monthly installment. About $1k each
6) In 5 years (60 months) = $50 to 60k each.. *Almost covered startup capital*
7) MOP over!! Can sell liao!!

With the future plan going forward at Tanjong Pagar area, take for example the PSA is going to be relocated and the whole area is undergoing a major revamp.. Duxton hitting $1k psf in 5 years is anytime one loh..

Let's be conservative and assume it hit $1k psf.
Selling Price: $1,151,000
Minus Outstanding Loan: $530k est

Sales Proceed = $621,000

Sales Proceed each = $310,500!!!

* Use $10k to settle Divorce la *

EVERY MONTH LET THE RENTAL PAY FOR THE MONTHLY INSTALLMENT!! STILL GOT SURPLUS TO COVER BACK YOUR START OFF CAPITAL!! AT THE END OF IT EACH STILL EARN AT LEAST $310K OR MORE IN 5 YEARS!! WA LAO THIS KIND OF LOBANG WHERE TO FIND SIA!!! HAHAHA!!

Ps: All the above mention is unethical, illegal, don't say I say one, I may be wrong, only for the money-driven hiongster, not recommended for someone with a strong faith and subjected to you really so heng is successful in the ballot.. Good luck people!! HUAT AH!!

Sunday, 26 May 2013

Singapore Home Loan Interest Rate

Hi Guys, understand that some of us are confused with our home loan package so please allow me to introduce myself, provide a brief explanation and hope it will clear your doubts. My name is Ben Teo, like many of you here I am one of the proud owner of Riverparc Residence EC. I worked as a mortgage banker in one of the local bank in Singapore. I don't represent any bank and the information I am going to share is based on the best of my knowledge as a mortgage banker and solely for the benefit of everyone in this group.

In layman term, bank offer 2 different type of packages.

1) Fixed rate

Very straight forward. Interest will not change at all. In this regards, it is always much higher compare to floating rate. In low interest environment, no one will opt for this unless you are very very conservative and expect interest to head north any time.

2) Floating rate

Floating rate means interest can change any time after at least 1 month notice period given by the bank. In Singapore, Bank offer floating packages that is pegged to either of these two variable component (Board rate (BR) or Sibor/Sor). Most of us opt for floating rate packages in todays market because of the low interest environment.

FAQ:

Why is there suddenly such changes to my interest rate? Eg from 0.68 to 0.98?

This is probably due to..

1) You are crossing into your second year in your package. To confirm, go dig out your Bank LO and look at the first or second page of the contract. It is normally written as..

Year 1: 0.68%
Year 2: 0.98%
Year 3: 1.38%

Be it BR or SIBOR.. Interest over the years will only goes up and not down so don't be alarm.

2) There might be changes in the variable component. Let me explain to you what is the variable component.

For BR:

Year 1: 0.68% (4.5% - 3.82%)
Year 2: 0.98% (4.5% - 3.52%)
Year 3: 1.38% (4.5% - 3.12%)

In this regards, the variable component is 4.5% which is the bank prevailing mortgage rate or known as board rate (BR). So unless BR changes, the interest you are paying will always be 4.5 - 3.82 = 0.68% for the first year. Thus it is more stable.

For SIBOR:

Year 1: 1M or 3M SIBOR + 0.5%
Year 2: 1M or 3M SIBOR + 0.6%
Year 3: 1M or 3M SIBOR + 0.8%

In this regards, the variable component is the 1M or 3M SIBOR rate which changes every 1 monthly or 3 monthly. Therefore for SIBOR package user, you will notice the interest is more volatile and changes all the time. It can goes up and down.

Eg in Year 1: If 3M SIBOR is at 0.36%, the interest payable will be 0.86% (0.36 + 0.5)
If 3M SIBOR increase to 0.50%, the interest payable will be 1% (0.5 + 0.5)

Why others Interest rate increase but mine decrease?

As explained above, if the decrease is not much like more then 0.3%. You are probably still in your current year and there's a slight decrease in the 1M or 3M variable component.

To conclude as a general rule of thumb, no one type of rate is the best. It all depend on individual risk assessment and take on the market environment. BR is less volatile and less transparent while SIBOR is more volatile and more transparent. Important point to note is, be it BR or SIBOR. Your interest will confirm head north going forward from year 1 to year 3. So remember to request for a conversion of rate or refinance once you are nearing the end of year 3 or one year after TOP once full loan is disburse. Hope this help guys. Cheers!!

Friday, 24 May 2013

Meaningful Local Production

I'm not a big fan for local production but I must say the production of this Singaporean Director Anthony Chen is really good.

The first film I'll like to share is one of his production titled "Ah Ma". It mean Granny or Grandmother to the Chinese. The film is about 14mins, you may find it boring at some point because I realize there's no background music.. But if you are able to view the film by putting yourself in the portray situation.. There will be no music as well.. There will only be NOTHING but sorrow and a lot of pain for everyone..

The next film that I'll like to share is the trailer for one of his upcoming movie titled "ILO ILO 爸媽不在家". The storyline is very realistic and moving.. The totality of economic factors, such as employment, income, inflation and wealth is the result of a high level of stress in most Singaporean household. Highly recommended. The movie will be screen in September. Please support local production.